- Operating loss of
$4.8 million compared to$215 million in 2022 - Revenues declined from
$260.0 million to$92.4 million driven by a decline in commodity revenues due to slowdown inChina economic activity. - Crypto-Mining revenue up over 50X
- Cash and cash equivalents of approximately
$280 million
Results of operations
Revenue
The company reported a notable decline in revenue from 2022 to 2023, with revenues dropping from
|
|
FY 2023 |
|
|
FY 2022 |
|
||||||||||
|
|
Amount |
|
|
Percentage |
|
|
Amount |
|
|
Percentage |
|
||||
Commodity trading |
|
|
68,456 |
|
|
|
74 |
% |
|
|
255,668 |
|
|
|
98.4 |
% |
Cryptocurrency mining |
|
|
18,898 |
|
|
|
20 |
% |
|
|
329 |
|
|
|
0.1 |
% |
Hosting service |
|
|
2,365 |
|
|
|
2.6 |
% |
|
|
- |
|
|
|
- |
|
Other |
|
|
2,746 |
|
|
|
3 |
% |
|
|
4,113 |
|
|
|
1.5 |
% |
Total |
|
|
92,465 |
|
|
|
100 |
% |
|
|
260,110 |
|
|
|
100 |
% |
As of
The Company commenced generating revenue from cryptocurrency mining in
Costs of revenue
Revenue costs decreased from
Operating expenses
The following table presents our operating expense by source and proportion for the periods indicated (in thousands, except percentages):
|
|
FY 2023 |
|
|
FY 2022 |
|
||||||||||
Selling |
|
|
672 |
|
|
|
4 |
% |
|
|
8,556 |
|
|
|
4 |
% |
General and administrative |
|
|
11,058 |
|
|
|
58 |
% |
|
|
180,704 |
|
|
|
89 |
% |
Share-based compensation |
|
|
7,264 |
|
|
|
38 |
% |
|
|
14,714 |
|
|
|
7 |
% |
|
|
|
18,994 |
|
|
|
|
|
|
|
203,974 |
|
|
|
|
|
Operating expenses decreased from
Selling expenses decreased from
General and administrative expenses decreased from $180.7 million in 2022 to $11.1 million in 2023, or 87.9% (
GAAP Operating Loss and EPS
The Company had operating loss of
GAAP EPS Basic (Diluted EPS is the same as EPS Basic)was
Income Tax
The company incurred
Balance Sheet and Cash Flow
As of
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|
|
|
|
|
|
|
|
(US$ thousands, except share data and per share data, or otherwise noted) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended |
|
|
Year ended |
|
||
|
|
|
|
|
|
|
||
|
|
2023 |
|
|
2022 |
|
||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
||
Net loss |
|
$ |
(3,651 |
) |
|
$ |
(229,447 |
) |
Net loss from continuing operation |
|
|
(3,651 |
) |
|
|
(229,186 |
) |
Net loss from discontinued operation |
|
|
(3,597 |
) |
|
|
(261 |
) |
Adjustments for: |
|
|
|
|
|
|
|
|
Depreciation of property, plant and equipment |
|
|
4,975 |
|
|
|
7,960 |
|
Depreciation of right-of-use asset |
|
|
800 |
|
|
|
693 |
|
Share-based compensation |
|
|
7,264 |
|
|
|
14,714 |
|
Accretion of finance leases |
|
|
32 |
|
|
|
75 |
|
Allowance for doubtful accounts - accounts receivable |
|
|
451 |
|
|
|
(500 |
) |
Allowance for doubtful accounts - other receivables |
|
|
228 |
|
|
|
170,842 |
|
Impairment of intangible assets |
|
|
970 |
|
|
|
8,425 |
|
Impairment of mining equipment |
|
|
4,455 |
|
|
|
25,043 |
|
Inventory impairment |
|
|
194 |
|
|
|
16,786 |
|
Adjustments, total |
|
|
19,369 |
|
|
|
244,038 |
|
|
|
|
|
|
|
|
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
1,172 |
|
|
|
17,911 |
|
Investment securities |
|
|
(307 |
) |
|
|
- |
|
Other receivables |
|
|
(25,194 |
) |
|
|
(60,083 |
) |
Amount due from related parties |
|
|
29,456 |
|
|
|
(53,732 |
) |
Inventories |
|
|
13,204 |
|
|
|
(5,267 |
) |
Intangible assets |
|
|
(15,960 |
) |
|
|
(329 |
) |
Accrued liabilities |
|
|
(5,193 |
) |
|
|
1,076 |
|
Tax (recoverable)/payable |
|
|
1,247 |
|
|
|
3,650 |
|
Accounts payable |
|
|
(94 |
) |
|
|
1,458 |
|
Other payables |
|
|
(4,795 |
) |
|
|
5,760 |
|
Amount due to related parties |
|
|
998 |
|
|
|
607 |
|
Lease liabilities |
|
|
(544 |
) |
|
|
921 |
|
Net cash generated from/(used in) operating activities from continuing operations |
|
|
9,708 |
|
|
|
(73,176 |
) |
Net cash generating from discontinued operating activities |
|
|
- |
|
|
|
261 |
|
Net cash generated from/(used in) operating activities |
|
|
9,708 |
|
|
|
(72,915 |
) |
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
Purchases of property, plant and equipment |
|
|
- |
|
|
|
(16,030 |
) |
Net cash used in investing activities from continuing operations |
|
|
- |
|
|
|
(16,030 |
) |
Net cash used in investing activities from discontinued operation |
|
|
- |
|
|
|
- |
|
Net cash (used in)/generated from investing activities |
|
|
- |
|
|
|
(16,030 |
) |
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
Repayment of principle portion of lease liabilities |
|
|
(288 |
) |
|
|
(768 |
) |
Proceed from share issuance, net of issuance costs |
|
|
17,884 |
|
|
|
18,463 |
|
Proceeds from disposal of subsidiaries |
|
|
- |
|
|
|
17,000 |
|
Net cash generated from financing activities |
|
|
17,596 |
|
|
|
34,695 |
|
|
|
|
|
|
|
|
|
|
EFFECT OF EXCHANGE RATES ON CASH |
|
|
(7,619 |
) |
|
|
(24,283 |
) |
|
|
|
|
|
|
|
|
|
NET CHANGES IN CASH AND CASH EQUIVALENTS |
|
|
19,685 |
|
|
|
(78,533 |
) |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR |
|
|
259,492 |
|
|
|
338,025 |
|
CASH AND CASH EQUIVALENTS, END OF YEAR |
|
$ |
279,177 |
|
|
$ |
264,434 |
|
Net cash used in operating activities was
- A cash inflow of
$13.0 million from change in inventory for the year endedDecember 31, 2023 , compared with a cash outflow of$5.3 million for the previous year. - A cash outflow of
$25.2 million from changes in other receivables for the year endedDecember 31, 2023 , compared with a cash outflow of$60.1 million for the previous year. - A cash inflow of
$29.5 million in amount due from related parties for the year endedDecember 31, 2023 , compared with a cash outflow of$53.7 million for the previous year.
Cash Flow Used For Investment Activities
There was no net cash used in investing activities for the year. The Company disposed off its data mining business segment on
Financing Activities
The net cash generated from financing activities was
We have financed our operations primarily through cash flows from operations, working capital from our shareholders, and equity financing through public and private offerings of our securities. We plan to support our future operations primarily from cash generated from our operations and equity financing.
About
SOS is an emerging blockchain-based and big data-driven marketing solution provider, with a nationwide membership base of approximately 20 million in
Forward-Looking Statements
Certain statements in this press release may constitute "forward-looking statements" within the meaning of the federal securities laws, including, but not limited to, our expectations for future financial performance, business strategies or expectations for our business. These statements constitute projections, forecasts and forward-looking statements, and are not guarantees of performance. SOS cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Words such as "may," "can," "should," "will," "estimate," "plan," "project," "forecast," "intend," "expect," "anticipate," "believe," "seek," "target," "look" or similar expressions may identify forward-looking statements. Specifically, forward-looking statements may include statements relating to the Company's:
- ability to execute its business plan;
- changes in the market for SOS' products and services; and
- expansion plans and opportunities.
These forward-looking statements are based on information available as of the date of this press release and our management's current expectations, forecasts and assumptions, and involve a number of judgments, risks and uncertainties that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements.
These risks and uncertainties include, but not are limited to, the risk factors described by SOS in its filings with the
- US government's policies and regulatory oversight of crypto currency mining operation and our other operations;
- SOS's cryptocurrency mining, commodity trading and marketing solutions businesses are still under development, with many uncertainties in integration of these various business segments;
- Failure to manage the newly launched commodities trading business effectively;
- Loss of key customers in the commodity trading business;
- failure to access a large quantity of power at reasonable costs could significantly increase SOS operating expenses and adversely affect our demand for SOS's mining activities;
- shortages in, or rises in the prices of mining machines may adversely affect the Company's business;
- any significant or prolonged failure in the data warehouse facilities and data mining facilities that SOS operates or services it provides, including events beyond its control, would lead to significant costs and disruptions and would reduce the attractiveness of its facilities, harm its business reputation and have a material adverse effect on its results of operation;
- security breaches or alleged security breaches of our data warehouses could disrupt SOS operations and have a material adverse effect on its business, financial condition and results of operation; and
- other risks and uncertainties indicated in SOS's
SEC reports or documents filed or to be filed with theSEC by SOS.
Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and you should not place undue reliance on these forward-looking statements in deciding whether to invest in our securities. We do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
View original content:https://www.prnewswire.com/news-releases/sos-limited-reports-2023-financial-results-302146730.html
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